Tech MahindraNSE:TECHM -1.68%78 ROE % is 18.29% as of Mar. 2026, which is 1% below its 10-year median of 18.55. GuruFocus rates NSE:TECHM with a GF Score™ of 78/100 and a GF Value™ of ₹1,562.07 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,679 Software companies, Tech Mahindra ranks better than 78.13% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tech Mahindra's annualized net income for the quarter that ended in Mar. 2026 was ₹54,152 Mil. Tech Mahindra's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹296,154 Mil. Therefore, Tech Mahindra's annualized ROE % for the quarter that ended in Mar. 2026 was 18.29%.
The historical rank and industry rank for Tech Mahindra's ROE % or its related term are showing as below:
NSE:TECHM'
s ROE % Range Over the Past 10 Years
Min: 8.64 Med: 18.55 Max: 21.97
Current: 17.08
During the past 13 years, Tech Mahindra's highest ROE % was 21.97%. The lowest was 8.64%. And the median was 18.55%.
NSE:TECHM's ROE % is ranked better than 78.13% of 2679
companies
in the Software industry
Industry Median: 4.68
vs NSE:TECHM: 17.08
Tech Mahindra (NSE:TECHM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Tech Mahindra ROE % Related Terms
Tech Mahindra ROE % Historical Data
* Premium members only.
The historical data trend for Tech Mahindra's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Tech Mahindra's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tech Mahindra ROE % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's ROE % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Tech Mahindra (NSE:TECHM) has a ROE % of 18.29% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tech Mahindra and its competitors. This is near median its historical median of 18.55. Over the past decade, Tech Mahindra's ROE % has ranged from 8.64 to 21.97. According to the industry distribution chart, Tech Mahindra ranks #586 out of 2679 companies in the Software industry, placing it in the top 21.9%.
Is Tech Mahindra's ROE % too high?
Tech Mahindra's current ROE % of 18.29% is near median its 10-year median of 18.55. Over the past 10 years, this metric has ranged from a low of 8.64 to a high of 21.97. The Software industry median ROE % is 4.68. Tech Mahindra's value of 18.29% is 290.8% above this industry median. Based on the distribution chart, Tech Mahindra ranks #586 out of 2679 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tech Mahindra has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's ROE % compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #586 out of 2679 companies for ROE %. This places Tech Mahindra in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 4.68. Tech Mahindra's value of 18.29% is 290.8% above this benchmark. Historically, Tech Mahindra's own ROE % has ranged from 8.64 to 21.97 over the past decade. While the company's 10-year median is 18.55 vs. the industry median of 4.68, Tech Mahindra has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.68, based on 2,679 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tech Mahindra's current ROE % of 18.29% is 290.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tech Mahindra and its competitors. For the Software industry, the median ROE % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current ROE % is 18.29%, which is near median its own 10-year median of 18.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tech Mahindra stock overvalued right now?
Based on GuruFocus' analysis, Tech Mahindra (NSE:TECHM) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,562.07, compared to a current price of ₹1,437.10 — trading 8% below its estimated fair value. The current ROE % is 18.29%, which is near median its 10-year median of 18.55 and 290.8% above the Software industry median of 4.68. Tech Mahindra's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Tech Mahindra (NSE:TECHM), the current ROE % is 18.29% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tech Mahindra (NSE:TECHM) Overvalued in 2026?
Based on GuruFocus' analysis, Tech Mahindra stock appears to be undervalued.
The current stock price of ₹1,437.10 is trading 8% below its estimated GF Value™ of ₹1,562.07.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
ROE %: 18.29% (near median its 10-year median of 18.55)
GF Value™: ₹1,562.07 vs. price of ₹1,437.10 (8% below fair value)
Industry Position: 290.8% above the Software median (#586 of 2679)
No single metric tells the full story. See the NSE:TECHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Process Services. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company generates the majority of its revenue from Communications & Media & Entertainment Industry. Geographically the company generates the majority of its revenue from the Americas.
78GF Score
Get the complete analysis for NSE:TECHM
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:TECHM has been successfully added to your 
